New techUK Paper Sets Out What Tech Exporters Want From Brexit

techUK launches new paper setting out what tech exporters want from Brexit

With Brexit negotiations back underway, techUK has published a new report on what tech exporters, particularly those in the Dual-Use, cyber and defence sector want to see when the UK leaves the EU.

This paper, titled ‘What Tech Exporters Want From Brexit’, outlines the steps the UK should take to ensure current trade is not disrupted, highlights the impact of uncertainty, how companies have already responded and complements an existing techUK paper ‘Leaving the Customs Union’ which focuses specifically on the importance of securing a customs system in time for the day the UK leaves the EU.

There has been positive progress on transition with a deal seemingly in place and the Articles on the continued flow of goods and conformity assessments are particularly welcome. But, there is still a lack of information on the future customs system and, with less than one year until exit day, this is a major concern.

Members believe Brexit will disrupt trade and one of the main conclusions is to ensure this doesn’t happen. There are several case studies in the report, where businesses have had to move operations into the EU and we urge Government to be more open with business, so companies can have more confidence about the future relationship.

From discussions it was also clear there are also opportunities from Brexit, especially in reforming the treatment of Dual-Use items and simplifying the overly complicated export licencing system for controlled items. The UK excels at innovative cyber, defence and Dual-Use products and techUK members in this area feel that that the UK regime is overly burdensome and inhibits export growth, something we can’t afford to do.

The report further encourages Government to look at how other non-EU countries approach Dual-Use goods and highlights the need for a long-term vision for this sector, especially if the EU Dual-Use Regulation recast fails to pass in the next year.

The report also makes suggestions around new and tech-led ‘Virtual Free Trade Zones’ that simplify customs clearances and help alleviate border crossing pressure. The recommendations in full are:

Ensure there are no new barriers in the movement of goods between the UK and the EU, nor an increase in base prices for products. This is key to maintaining UK competitiveness in the tech and digital sectors.

Transitional deal terms should be outlined by early 2018 and be results-driven and business ready. techUK believes this should have been at least two years and should follow a project management system with key milestones.

Reform export controls. The UK has taken the lead from Europe on a variety of export control policies and Brexit is an opportunity to reform, future-proof and simplify onerous export control regulations.

Consider other Dual-Use arrangements. The Dual-Use Regulation will not pass in time to be accounted for under the processes in the EU Withdrawal Bill, and the UK should set out a long-term strategy for promoting the exports of Dual-Use goods.

About techUK

techUK represents the companies and technologies that are defining today the world that we will live in tomorrow. Around 850 companies are members of techUK. Collectively they employ approximately 700,000 people, about half of all tech sector jobs in the UK. These companies range from leading FTSE 100 companies to new innovative start-ups. The majority of our members are small and medium-sized businesses.

techUK is committed to helping its members grow, by:

• Developing markets

• Developing networks

• Reducing business costs and risks

techUK is the trading name for Information Technology Telecommunications and Electronics Association, a company limited by guarantee.